## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** **REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2020** ## **A company limited by guarantee** **Company Number 1029607** ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Contents** ||Page| |---|---| |Legal and administrative information|1| |Report of the Directors/Trustees|2 – 4| |Independent Examiner’s Report to the Members|5| |Financial Activities (Including Income and Expenditure Account)|6| |Balance Sheet|7| |Notes to the financial statements|8-9| |Portfolio Movements|10| |Manchester Domestic Mission Grants|11| |Subscriptions from Member churches|11| |MUCF, General and Leech Fund Grants|12| # **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Legal and Administrative information** **as at 31 December 2020** ## **Status** The organization is a charitable company limited by guarantee, incorporated on 3[rd] November 1971. It is registered as a charity. It was granted Trust Corporation status on 18[th] January 1973. The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed by its Articles of Association. ## **Directors/Trustees** The following served as directors from 1 January 2020 (or from date of appointment) to the date of this report: Geoffrey Levermore Vince McCully Laura Mary Dobson Jeffrey Gould Rev. Anna Jarvis Rev. Christopher Cody Coyne Mark Pearce (appointed 9 June 2020) Rev. Daniel Crosby (appointed 9 June 2020) The directors are those members of the parallel unincorporated association who are also members of the company. ## **Registered Office** Cross Street Unitarian Chapel, Cross Street, Manchester, M2 1NL ## **Bankers** CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ ## **Solicitors** Weightmans LLP, Pall Mall Court, 61-67 King Street, Manchester, M2 4PD ## **Independent Examiner** Fari Minaeian of Hanleys, Chartered Accountants, Spring Court, Spring Road, Hale, Cheshire WA14 2UQ ## **Investment Manager** Newton Investment Management Limited, Mellon Financial Centre,160 Queen Victoria Street, London, EC4V 4LA Page 1 # **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** # **Report of the Directors/Trustees** # **for the year ended 31 December 2020** Report of the Directors/Trustees for the year ended 31st December 2020 The directors present their report, with the financial statements of the company, for the year ended 31st December 2020. 1. Structure and objects of the company and its constituent trusts. The company, which is limited by guarantee, whose registered number under the Companies Acts is 1029607, administers and accounts as sole trustee for four charities: General Fund. (Charity Commission number 503753). Manchester Unitarian Congregational Fund. (Charity Commission number1032203) Manchester Domestic Mission Society Fund. (Charity Commission number 253233) Leech Fund. By virtue of its status as a Trust Corporation, it acts as sole trustee of seven churches in the Manchester District; of the Provincial Assembly of Lancashire and Cheshire; it is custodian trustee for another church, and with other trustees is a trustee of two further churches. ## 2. Public Benefit Statement The Trustees take into account the Charity Commission guidance on public benefit and believe that the activities of the Trusts are in line with that guidance ## 3. Origin and objects of the funds - (a) The General Fund is derived from legacies, sale of Unitarian properties in the Manchester District and other funds which have been vested in it. - (b) The Manchester Unitarian Congregational Fund was created by the amalgamation of seven existing charities, the assets arising on the closure of a church, a grant from the Trustees of Flagg Chapel and the consideration for the release of a covenant on land formerly belonging to Swinton Church The clear income from both these funds is to be applied “towards the upkeep, repair and improvement of churches whose congregations are members of the Manchester District Association, and in and towards the maintenance of services and otherwise furthering the religious, educational and charitable work of the Association”. (c) The object of the Manchester Domestic Mission Society Fund is “the diffusion of religious and other elevating influences, by Ministry among the poor in Manchester”. In the 19th century the Society employed a missioner and set up schools. Nowadays grants are made to charities that operate in deprived parts of Greater Manchester. (d) The Leech Fund was set up for the benefit of Ministers in the counties of Northumberland, Lancashire and Cheshire. In practice, it makes grants to ministers and students for the provision of books. The company invests the financial assets of these Funds in stock exchange securities and deposits at interest. Page2 ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Report of the Directors/Trustees - continued** ## **for the year ended 31 December 2020** ## 4. Organisational and decision-making structure The Executive Committee consists of the President, Treasurer, General Secretary and up to ten other members. Members other than the officers serve for three years. They are elected at the Annual General Meeting of the Unincorporated Association and meet four times a year, to decide policy, receive reports, and authorise grants. All are unpaid. The Company is associated with twelve Unitarian churches in the Manchester area which send delegates, two per church plus its minister, to meetings of the parallel Unincorporated Association which also meets four times a year. That body, to which the Executive Committee reports, discusses matters of general interest and aims to support the constituent churches in their religious and social activities. It publishes a quarterly magazine, The Unitarian, which is available as a pdf on their website, www.unitariansmda.org.uk ## 5. Association with related parties, charities etc. The charity is associated with the General Assembly of Unitarian and Free Christian Churches, which is the national body, in the United Kingdom, for Unitarians. It is not financially connected. The Association is also represented on Manchester Council of Christians and Jews, and the Standing Advisory Council on Religious Education (SACRE) for East Cheshire and Manchester. ## 6. Review of activities - (a) The General Fund provided for the administration costs and independent examination of the Company. The sale of shares produced a surplus for the fund of £2,363. The Fund generated net outgoing resources of £27,377 (2019–outgoing Resources £9,351). After the unrealised increase in the value of investment assets of £21,454, (2019-increase £81,395) the value of the Fund decreased by £5,923 (2019 – increase £72,044) in the year. - (b) The Manchester Unitarian Congregational Fund assisted, to the extent of £24,900 (2019 - £40,650), in the provision of support for the stipends of eight ministers. General subscriptions and donations amounted to £157,637 (2019 - £149,455). The sale of shares produced a surplus for the fund of £3,335. Expenditures in the year exceeded income by £161,708 (2019 –excess of income £565,026). After taking account of the unrealised gain on investment assets of £30,276 (2019 – gain £126,354) the Fund decreased in value by £131,432 (2019 – increase £691,380) in the year. - (c) The Manchester Domestic Mission Society Fund provided grants of £10,500 (2019 - £15,000) to charities which assist and advise persons resident in deprived parts of the City. The sale of shares produced a surplus for the fund of £1,442. Expenditure exceeded income by £1,495 (2019 - excess of expenditure of £5,331). The unrealised gain in the value of investment assets amounted to £13,089 (2019 – gain £49,658) which resulted in an increased value of the Fund of £11,594 (2019 – increase £44,327). . - (d) The Leech Fund made a grant of £107 in the year (2019 - £100). The sale of shares produced a surplus for the fund of £37. There was a net surplus of £122 (2019 - surplus of £145). There was an unrealised gain in the value of investment assets of £332 (2019 -gain £1,261), leading to a increase in the Fund of £454 (2019-increase £1,406). - (e) The Association does not undertake fund raising activities. Page 3 ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Report of the Trustees - continued** ## **for the year ended 31 December 2020** ## 7. Statement concerning major risks The main risk to the assets of the charity derives from the uncertain world economic situation and any adverse effect this could have on the capital value of its investments and of the income derived from them. ## 8. Grant-making policy The General Fund makes grants for building improvements, surveys of its constituent churches and support of special initiatives regarding the finance of ministry. The Manchester Unitarian Congregational Fund makes grants in aid of the stipends of ministers and for the repair and maintenance of church buildings. Donations are made, mainly to national Unitarian bodies. Grants are considered by the executive committee on their merits, and within the income of the Fund, taking one year with another. Grants from the Manchester Domestic Mission Society Fund are recommended by the council committee. Its members actively monitor and visit the charities to which the grants are made. Grants from this Fund are intended to improve the lot of the poorer and more disadvantaged residents of Greater Manchester. The Leech Fund makes grants to students or ministers for the purchase of books. ## 9. Directors’ responsibility for financial statements Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; prepare the financial statements on a going concern basis unless it is inappropriate to presume that the The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding of the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## 10. Independent Examiner The Independent Examiner, Fari Minaeian of Hanleys, will be proposed for reappointment at the annual general meeting. On behalf of the board, March 2021 Page 4 **Manchester District Association of Unitarian and Free Christian Churches Incorporated** # **Independent Examiner’s Report to the Members for the year ended 31 December 2020** I report on the Financial Statements of the company for the year ended 31[st] December 2020. The statements include the financial activities of the following funds: General Fund Charity Number 0503753 Manchester Unitarian Congregational Fund Charity Number 1032203 Manchester Domestic Mission Society Fund Charity Number 0253233 ## **Respective responsibilities of trustees and the examiner.** As the charity's trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of section 144(2) of the Charities Act 2011 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under section145 (5)(b) of the Act, whether particular matters have come to my attention. ## **Basis of the independent examiner’s report.** My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. ## **Independent examiner’s statement.** In connection with our examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements (a) to keep accounting records in accordance with section 130 of the Act; and (b) to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Fari Minaeian, BSc, FCA Hanleys Chartered Accountants Spring Court Spring Road Hale Cheshire Date: Page 5 **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Financial Activities (Including Income and Expenditure Account)** ## **for the year ended 31 December 2020** |**Note**
**Incoming Resources**
Sale of Dob Lane
Sale of Car Park Land
Gain on Sale of shares
Subscriptions from member
churches
Investment Income
5
**Total Incoming Resources**
**Resources Expended**
Grants
Administration
**Total Resources Expended**
**Net Incoming Resources**
**6**
**Increase**
**in**
**value**
**of**
**Investment**
**Net Movement in Funds**
**Funds 1st January 2020**
**Funds 31st December 2020**|**General**
**MUC**
**MDMS**
**Leech**
**Total**
**Total**
**Fund**
**Fund**
**Fund**
**Fund**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
-
3,300
**-**
2,363
-
3,335
**-**
1,442
**-**
37
-
7,177
732,766
-
1,215
-
-
-
1,215
413
12,420
17,494
7,563
192
37,669
49,211| |---|---| ||**15,998**
**20,829**
**9,005**
**229**
**46,061**
**785,690**| ||-
182,537
10,500
107
193144
205,205
43,375
-
-
-
43,375
29,996| ||**43,375**
**182,537**
**10,500**
**107**
**236,519**
**235,201**| ||**(27,377) (161,708)**
**(1,495)**
**122**
**(190,458)**
**550,489**
**21,454**
**30,276**
**13,089**
**332**
**65,151**
**258,668**| ||**(5,923)**
**(131,432)**
**11,594**
**454**
**(125,307)**
**809,157**
**789,584**
**1,440,214**
**356,809**
**9,534**
**2,596,141**
**1,786,984**| ||**783,661**
**1,308,782**
**368,403**
**9,988**
**2,470,834**
**2,596,141**| Page 6 ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED Balance Sheet at 31 December 2020** |**Fixed Assets**
Tangible fixed assets - Investment Land
Investments
Loans
**Current Assets**
Debtors
Cash at bank
Less Liabilities falling due within one year
**Net current assets**
**Total net assets**
**Unrestricted Funds**
General Fund
Manchester Unitarian Congregational Fund
Manchester Domestic Mission Society Fund
Leech Fund|Notes
2
3

4|2020
2019
£
£
-
-
2,317,105
2,494,777
56,700
24,900| |---|---|---| |||2,373,805
2,519,677| |||- 999
100,698
78,872
(3,669)
(3,407)| |||97,029
76,464| |||2,470,834
2,596,141| |||783,661
789,584
1,308,782
1,440,214
368,403
356,809
9,988
9,534| |||2,470,834
2,596,141| For the year ended 31st December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect to (1) accounting records and (2) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of and its profit and loss for the financial year and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company. These accounts have been prepared in accordance with the provisions applicable to companies subject to small companies’ regime. These accounts were approved by the Directors on March 2021 and were signed on their behalf by: – Director – Director Page 7 **for the year ended 31 December 2020** ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Notes forming part of the Financial Statements** ## **1. Accounting Policies** (a) The financial statements have been prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at market value, and in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Companies Act 2006 and follow the recommendations in Charities SORP (FRS102) applicable for accounting periods commencing on or after 1 January 2016. (b) Listed investments are included in the balance sheet at their middle market value at the accounting date. (c) Grants and donations receivable and payable are accounted for when received or paid by the charity. (d) Dividends and interest on securities and bank deposits are brought into account when received by the charity or its investment manager. ## 2. **Investments** |Opening balance
Add acquisitions in the year, at cost
Less sales receipts in year

Add realised profit/ (loss) on Sales

Add Increase in value of investment
Closing balance£
**3. Unsecured loans**


Balance outstanding at 1stJanuary 2020
New loan
Addinterest

Lessrepayments
Balance outstanding at 31stDecember 2020|2,494,777 1,536,108
- 700,000
(250,000) -
2,244,777 2,236,108
7,177 __ _-
2,251,954 2,236,108
65,151 258,669
2,317,105 £ 2,494,777
OldhamCross Street Chapel
£ £
24,900 NIL
0
-
-
24,900
40,000
1,200
7,000
£23,700
£33,000|1,536,108
700,000
-
2,236,108
__ _-
2,236,108
258,669
£ 2,494,777| |---|---|---| Page 8 ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN** ## **CHURCHES INCORPORATED** ## **Notes forming part of the Financial Statements (Continued)** ## **for the year ended 31 December 2020** |**4. Liabilities falling due within one year.**2020 2019| |---| |£ £| |Lay Preachers Association Fund 398 398| |Legal fees accrual
27 -| |Grants payable
- -| |General Creditors 1,594 1,359| |Independent Examiner’s fee1,650 1,650| |£3,669 £3,407| ## **5. Investment Income** Investments 2020 2019 £ £ £ General Fund 12,420 12,420 16,932 MUC Fund 17,494 17,494 22,365 MDMS Fund 7,563 7,563 9,669 Leech Fund 192 192 245 £37,669 £37,669 £49,211 ## **6. Net Incoming Resources for the year** are stated after charging: ## **7. Staff costs and numbers** The secretary charged £nil for the work done in the year (2019-£Nil) ## **8. Taxation** The charitable company is exempt from corporation tax on its charitable activities. ## **9. Analysis of net assets between funds:** |


Debtors
Investments
Loans
Cash at bank
Current liabilities

|







|General
Fund
£
-
631,160
56,700
99,470
(3,669)
|MUC MDMS Leech Total
Fund Fund Fund Funds
£ £ £ £
- - - -
1,312,172 364,647 9,126 2,317,105
_- - -_56,700
(3,390) 3,756 862 100,698
- - - (3,669)
-
**£1,308,782 £368,403** **£9,988** **£2,470,834**|MUC MDMS Leech Total
Fund Fund Fund Funds
£ £ £ £
- - - -
1,312,172 364,647 9,126 2,317,105
_- - -_56,700
(3,390) 3,756 862 100,698
- - - (3,669)
-
**£1,308,782 £368,403** **£9,988** **£2,470,834**|MUC MDMS Leech Total
Fund Fund Fund Funds
£ £ £ £
- - - -
1,312,172 364,647 9,126 2,317,105
_- - -_56,700
(3,390) 3,756 862 100,698
- - - (3,669)
-
**£1,308,782 £368,403** **£9,988** **£2,470,834**| |---|---|---|---|---|---| |||**£738,661 **|**£1,308,782 **|**£368,403**|**£9,988**| **Page 9** ## **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Notes forming part of the financial statements (Continued)** **for the year ended 31 December 2020** ## **Portfolio Movements in the twelve months to 31[st] December 2020** |Stock
Quantity
31.12.20
Equities
Sustainable Real Return Fund 409,138
Global Income Fund Newton 100,834

Overseas
Growth and Income Fund 712,769
SRI Fund for Charities 295,550

Total Investments|Market
Cost Value
Value 31.12.19
£
461,098 468,668

150,000 252,175
611,098 720,843
560,233 1,041,355
287,237 489,756
847,470 1,531,111
1,458,568 2,251,954|Market (Decrease)/
Value Increase in
31.12.20 value
£
£
514,123 45,455
248,998 (3,177)
763,121 42,278
1,035,795 (5,560)
518,189 28,433
1,553,984 22,873
2,317,105 65,151| |---|---|---| **Page 10** **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Manchester Domestic Mission Grants and Subscriptions from member churches** ## **for the year ended 31 December 2020** |**Manchester Domestic Mission Grants**
**2020 2019**
**£ £**
Barlow Moor Community Assoc. 2,000 3,500
The River
- -
Oldham United
1,500 -
River Manchester 2,000 3,000
Tree of Life Centre Wythenshawe 2,500 1,750
Oldham UK Education and Faith Foundation 2,000 2,000
Oldham Destitution food project - 1,500
Coffee 4 Craig
-
2,000
East Cheshire Mental Health
500 500
Christ Church Colshaw - 750
The Wednesday Club
- -
Oldham Unity- -|**Manchester Domestic Mission Grants**
**2020 2019**
**£ £**
Barlow Moor Community Assoc. 2,000 3,500
The River
- -
Oldham United
1,500 -
River Manchester 2,000 3,000
Tree of Life Centre Wythenshawe 2,500 1,750
Oldham UK Education and Faith Foundation 2,000 2,000
Oldham Destitution food project - 1,500
Coffee 4 Craig
-
2,000
East Cheshire Mental Health
500 500
Christ Church Colshaw - 750
The Wednesday Club
- -
Oldham Unity- -|**Manchester Domestic Mission Grants**
**2020 2019**
**£ £**
Barlow Moor Community Assoc. 2,000 3,500
The River
- -
Oldham United
1,500 -
River Manchester 2,000 3,000
Tree of Life Centre Wythenshawe 2,500 1,750
Oldham UK Education and Faith Foundation 2,000 2,000
Oldham Destitution food project - 1,500
Coffee 4 Craig
-
2,000
East Cheshire Mental Health
500 500
Christ Church Colshaw - 750
The Wednesday Club
- -
Oldham Unity- -|**Manchester Domestic Mission Grants**
**2020 2019**
**£ £**
Barlow Moor Community Assoc. 2,000 3,500
The River
- -
Oldham United
1,500 -
River Manchester 2,000 3,000
Tree of Life Centre Wythenshawe 2,500 1,750
Oldham UK Education and Faith Foundation 2,000 2,000
Oldham Destitution food project - 1,500
Coffee 4 Craig
-
2,000
East Cheshire Mental Health
500 500
Christ Church Colshaw - 750
The Wednesday Club
- -
Oldham Unity- -| |---|---|---|---| |10,500 15,000|||| |**Subscriptions from Member Churches**
Altrincham
Brookfield
Chorlton
Cross Street
Dean Row
Dob Lane
Hale
Knutsford
Macclesfield
Monton
Oldham
Rivington
Styal
Miscellaneous
|-
-
-
-
-
-
-
-
-
-
-
-
-
1,215
1,215|













|-
-
-
-
-
-
-
-
-
-
-
-
-
413
413| Page11 **MANCHESTER DISTRICT ASSOCIATION OF UNITARIAN AND FREE CHRISTIAN CHURCHES INCORPORATED** ## **Stipend and Other Grants** ## **for the year ended 31 December 2020** |**Manchester Unitarian Congregational Fund**

**Stipend Grants**
Knutsford
Monton
Macclesfield
Rivington
Norcliffe
Urmston
Chorlton
Oldham

**Other Grants (incl.Covid 19 Grants)**
Monton
Unitarian College
Chorlton
Oldham roof
Knutsford

Urmston
Dunham Road
Norcliffe
Rivington
Dean Row
Brookfield
Cross Street
Hale
Macclesfield


**Total Congregational Fund Grants**
**Donations**
Trevor Jones Fund
Inquirer
Ministry Student Fund
SACTH
Hucklow Bursary Fund
Historic Buildings

**Leech Fund**
Book grant

**Total Grants and Donations**|2020
£
3,000
6,000
-
-
900
5,000
5,000
5,000
**24,900**
20,694
4,000
14,275
15,395
14,000
6,500
15,500
9,000
9,173
7,000
4,000
14,100
10,000
14,000
**157,637**
**182,537**
-
-
-
-
-
-
-
107
**107**
**182,644**|







| |---|---|---| |||2,500
2,000
2,000
2,000
1,000
1,000
10,500
100
**100**
**190,205**| Page 12